Liberty Oilfield Services Inc (LBRT)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 17.44 | 15.55 | 17.67 | 8.01 | 19.53 | |
| DOH | days | 20.93 | 23.47 | 20.65 | 45.55 | 18.69 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 17.44
= 20.93
The days of inventory on hand (DOH) for Liberty Energy Inc has varied over the past five years. In 2023, the company took approximately 22.43 days to sell its inventory, which is a slight improvement from the previous year's 24.86 days. This indicates that the company managed its inventory more efficiently in 2023. However, compared to 2021 and 2019, where the DOH was 21.83 days and 19.94 days respectively, the inventory turnover in 2023 was relatively higher.
The significant increase in DOH in 2020 to 50.44 days suggests potential issues with inventory management during that period. It is positive to see the company improving its inventory turnover in subsequent years.
Overall, analyzing the trend in DOH helps provide insights into the company's inventory management efficiency and its ability to control costs associated with excess inventory or stockouts. Further investigation into the factors influencing inventory turnover in each year could provide a more comprehensive understanding of Liberty Energy Inc's operational performance.
Peer comparison
Dec 31, 2023